and all too often, entrenched local interests see foreign firms as unwanted competition that will upset the status quo. among state-owned enterprises, the shenyang machine tool works is doing better than most. today it is 60% state-owned and 40% privately owned. it recently provided equipment for the maglev railroad extension for e w shanai airport and it has begun repaying its world bank loan. while the tool works still struggles with the effects of restructuring, its example holds promise for the northeast's future. and geographer li remains hopeful. ( li speaking chinese ) translator: in recent years, shenyang has been working on product development, on upgrading its plants and equipment, adopting new technologies and attracting overseas investment. it has achieved significant results with the establishment of the shenyang economic and technical development zone and the revitalization of the tiexi industrial zone. these efforts are paying off in the renewal of shenyang's industrial base. i believe that the region will grow to play a more important role in northeast asia. narrator: in